Russian Arctic zone may be expanded to include two KhMAD municipalities involved in oil and gas production
MOSCOW. Sept 6 (Interfax) - The Ministry for the Development of the Russian Far East has prepared an amendment to Federal Law No. 193 "On State Support for Entrepreneurship in the Arctic Zone of the Russian Federation" which involves the inclusion of two municipalities from the Khanty-Mansiysk Autonomous District (KhMAD) into the country's Arctic zone.
According to the draft law posted on the regulation.gov.ru portal, the Berezovsky Municipal District and Beloyarsky Municipal District municipalities located in Khanty-Mansiysk Autonomous District are to be added to the land territories of the Arctic zone. Large oil and gas enterprises operate on the territory of these municipalities.
The official KhMAD government website reports that Russian President Vladimir Putin approved the proposal of the district's governor Natalya Komarova to include the Berezovsky and Beloyarsky districts in the Arctic zone. "This is an important decision; new opportunities and a new responsibility for us to develop, to invest in," Komarova said in a press release.
The Berezovsky and Beloyarsky districts are characterized by low population density and high potential for the development of hydrocarbons and solid minerals, such as manganese, chromium and copper ores, zinc, lead, and quartz, KhMAD authorities said.
The Berezovsky district is located in the northwestern part of the Khanty-Mansi Autonomous District, mainly within the West Siberian Plain. The population is 22,250 people inhabiting an area of 88,000 square kilometers. The Berezovsky district is called the birthplace of Tyumen oil, as the development of Western Siberia subsoil began there. Exactly seventy years ago, in September 1953, the first gas field in Western Siberia was discovered on the outskirts of the village of Berezovo. It is specifically in this area where Gazprom has drilling licenses. The Beloyarsky district borders on Berezovsky, and occupies an area is 41,680 square kilometers. It is an important oil production site for Surgutneftegas . Lukoil also produces oil in the region.
Currently, land territories in the Arctic zone include: the Murmansk region, the Nenets, Chukotka and Yamalo-Nenets Autonomous Districts, and parts of the territories of Karelia, Komi, Yakutia, Krasnoyarsk Territory and the Arkhangelsk Region.
As reported, several years ago Russia adopted a broad package of economic incentives for the development of the Arctic zone. Businesses operating there can enjoy a wide range of benefits and preferences. The Strategy for the Development of the Arctic was also adopted, which involves stimulating the development of new industries in Arctic zone regions, intensifying the geological study of the subsoil, and developing new mineral deposits. In addition, the Arctic has a special economic regime for private investment, which is invested in the creation of new, and modernization of existing, industries. The Arctic Strategy also implies a significant improvement in all spheres of social life for the area's citizens, a simplified procedure for granting land plots, and the preservation and promotion of the cultural heritage and languages of indigenous peoples.